Details of this Paper

BA 464 Final Exam

Description

solution


Question

BA 464 Final Exam;BA464 Final Exam;Part I: Multiple Choice;Select the best response to each of the following multiple choice questions;No.;Question Text;AnsA;AnsB;AnsC;AnsD;1;On December 31, the assets of a business include: Cash, $3,500, Accounts Receivable, $14,000, and Supplies, $1.050. The liabilities on December 31 total $7,600. The owner's equity on December 31 is;$18,550;$25,100;$10,950;$11,100;2;Separate compatible units of an accounting package that are integrated to function together are defined as;grids;cells;modules;spreadsheets;3;Current liabilities;are due within one year or one operating cycle, whichever is longer;must be of a known amount;must be of an estimated amount;are subtracted from long-term liabilities on the balance sheet;4;The treasury stock account is shown on the balance sheet as a(n);contra asset;contra stockholders' equity account;contra liability;liability;5;After the receipt of the stock dividend, a corporation's cost basis per share in the stock of the invested will;increase;decrease;remain the same;impossible to determine without knowing the market value of the stock;6;Creditors use financial statement analysis to;evaluate the company's dividend payment record;evaluate the company's stock;predict the amount of expected returns and assess the risks associated with those returns;none of the above;7;An example of an inventoriable cost is;advertising expense;depreciation on office equipment;indirect labor;research costs;8;In a process costing system, the entry to record the use of direct materials in production would include a;debit to finished goods inventory;debit to materials inventory;debit to work in process inventory;credit to finished goods inventory;9;Which of the following budgets is an operating budget?;capital expenditures budget;sales budget;budgeted balance sheet;cash budget;10;All of the following are likely to be cost drivers except;production orders;cost accountant's labor hours;product inspections;material requisitions;11;Purchasing office equipment on account would;decrease owner's equity;increase owner's equity;have no effect on owner's equity;Decrease liabilities;12;Posting the entries in the sales journal to the accounts receivable subsidiary ledger should be done;on a weekly basis;only at the end of the accounting period;on a daily basis;at the end of each month;13;When a company records accrued interest at year-end on a discounted note payable;discount on note payable is credited;note payable is credited;interest expense is credited;note payable is debited;14;Restrictions on retained earnings;require a journal entry;are usually reported in the notes to the financial statements;are disclosed on the income statement;reduce total assets on the balance sheet;15;For available-for-sale investments, GAAP requires that;the long-term available-for-sale investment account be reported at cost and an allowance to adjust investment to market account be established;the long-term available-for-sale investment account be adjusted to its market value on the balance sheet date;the unrealized gain or loss from adjusting cost to market flow through the income statement;none of the above;16;The fact that cost of goods sold decreased by $20,000 from 2005 to 2006 would most likely be revealed by;trend analysis;vertical analysis;horizontal analysis;ratio analysis;17;Rent expense incurred on a factory building would be treated as a(n);indirect cost;product cost;period cost;both a and b are correct;18;The number of equivalent units in work in process regarding direct materials and conversion costs;must be lower for materials;must always be equal;may be different;must be higher for conversion;19;Which of the following alternatives reflects the proper order of preparing components of the master budget?;financial budget, operating budget, capital expenditures budget;financial budget, capital expenditures budget, operating budget;operating budget, capital expenditures budget, financial budget;capital expenditures budget, financial budget, operating budget;20;Activity-based costing systems;accumulate overhead costs by departments;are less complex and therefore less costly than traditional systems;can be used in manufacturing firms only;have separate indirect cost allocation rates for each activity;21;A payment of $400 to a creditor will cause;cash to be debited for $400;accounts receivable to be credited for $400;accounts payable to be debited for $400;accounts payable to be credited for $400;22;A __________ limits access to a local network.;computer virus device;marker;firewall;point-of-sale terminal;23;A limited partnership;must have at least two general partners;is illegal in most states;must have at least one general partner;none of the above;24;On January 2, 2003, Laser Corporation issues $200,000 face value, 6% bonds for $204,000. It may be derived that the effective rate of interest was;less than 6%;more than 6%;equal to 6%;impossible to determine from the given data;25;Investments accounted for using the equity method are initially recorded at;cost;the total of the investee's equity accounts multiplied by the percentage ownership acquired;the fair market value of the investee company multiplied by the percentage ownership acquired;either a or c, depending on how the investor classifies the investment;26;When calculating trend percentages, all percentages shown are relative to;the immediately preceding year;the current year;the base year;an average index calculated for all the years shown;27;Which costing system would better account for a unique individual product?;period costing system;process costing system;product costing system;job costing system;28;A company began its operations by starting 30,000 units in production. During the month, 22,000 were completed and transferred out while the remaining units were 45% complete. The equivalent units for conversion costs would be;25,600 units;22,000 units;26,400 units;30,000 units;29;Desired ending inventory is 80% of beginning inventory, If cost of goods sold is $300,000, purchases will always;be more than cost of goods sold;be less than cost of goods sold;equal cost of goods sold;be 80% of cost of goods sold;30;A common problem in developing an ABC costing system is;identifying too few activities;identifying too many activities;failing to identify any activities;none of the above;31;Providing services for $2,000 where cash is immediately received, will cause;service revenue to be debited for $2,000;service revenue to be credited for $2,000;cash to be credited for $2,000;accounts receivable to be credited for $2,000;32;All of the following are documents used to control a bank account except a(n);bank reconciliation;signature card;invoice;deposit ticket;33;An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships;unlimited liability;limited life;mutual agency;co-ownership of property;34;Mickey Corporation issues 50, $1,000 face value, 10% bonds at 95. The journal entry includes a;debit to cash for $47,500;credit to bonds payable for $47,500;debit to cash for $50,000;debit to premium on bonds payable for $2,500;35;When using the equity method to account for long-term investments in stock;an adjusting entry is made to adjust the investment to market value;an adjusting entry is made only if the current market value on balance sheet date is lower than cost;an adjusting entry is made only if the current market value on balance sheet date is higher than cost;no adjusting entry is made;36;Assuming the inventory balance at the end of 2005 is $30,000, and it has decreased 5% since the end of 2004, the balance at the end of 2004 (rounded to the nearest whole dollar) was;$27,075;$28,500;$33,241;$31,579;37;Which of the following industries is most likely not to use a job costing system?;printing;aircraft;custom furniture;Chemicals;38;Beginning work in process is 900 units, units completed and transferred out in October are 3,200 units, and ending work in process is 500 units. Under FIFO costing, what are units started in production in October?;3,600;2,800;3,200;none of the above;39;Operating budgets include all of the following except;cash receipts and payments;sales budget;budgeted income statement;inventory budget;40;A JIT production system will;produce goods in smaller batches than a traditional production system;require longer setup times than a traditional production system;have like machines grouped together in the production facility;require higher inventory levels

 

Paper#31393 | Written in 18-Jul-2015

Price : $47
SiteLock